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Tuesday 5 March 2013
Career Offender Sentenced to 14 Years in Sex Trafficking CaseRead the Press Release
PORTLAND, Ore. – Dwayne Jamal Hubbard, 24, of Portland, Oregon, was sentenced today by U. S. District Judge Anna J. Brown to 168 months in prison, to be followed by a five-year term of supervised release. The federal charges were filed in May 2012 after an investigation led by the FBI’s Child Exploitation Task Force working in conjunction with the Tigard Police Department. On December 10, 2012, Hubbard pled guilty to sex trafficking of a minor, which carries a mandatory minimum of ten years in prison and a maximum of life imprisonment.
Today at his sentencing, the Court found Hubbard qualified as a career offender based on his prior felony convictions, and this status subjected him to enhanced penalties. According to prosecutors, Hubbard met a 17-year-old female online, arranged a meeting, and immediately started encouraging her to engage in commercial sex acts by posting sexual advertisements on Backpage.com. Within days of meeting, defendant took sexually suggestive photographs of her, created online advertisements, and began sending her out to engage in sex acts with strangers in exchange for money. Hubbard continuously pestered her through text messages asking her if she could make him some money.
“This defendant believed being a pimp and selling young women for sex was a low-cost way to earn significant financial benefit,” said U.S. Attorney Amanda Marshall. “My office is committed to changing the cost side of the analysis – if you get caught sex trafficking in this District, we will work with our law enforcement partners to arrest you and seek the kind of stiff penalties that Congress envisioned for this crime.”
In crafting an appropriate sentence, Judge Brown noted the horrific nature of the offense and addressed the negative impact it has in our community. Because Hubbard agreed to accept responsibility for his crime and resolve his case early, the government recommended some downward variance to his guideline range to reach a 14-year sentence. The Court agreed that by resolving early, defendant prevented further harm to the victim that can only be compounded by protracted litigation.
The case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
California Man Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
COEUR D’ALENE – Donald Paul Hankey, 28, of San Jose, California, pleaded guilty today to an indictment charging him with one count of felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced. Hankey appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to the indictment, on November 13, 2012, Hankey knowingly and illegally possessed a Springfield Armory 9 millimeter handgun. Hankey is prohibited from possessing firearms due to a previous felony conviction for possessing a controlled substance. The government is seeking forfeiture of the firearm.
The charge of felon in possession of a firearm is punishable by up to ten years in a prison, a maximum fine of $250,000, and up to three years of supervised release.
Hankey is scheduled to be sentenced on June 24, 2013, at the federal courthouse in Coeur d’Alene.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Brothers and Hit-Man Convicted of RICO and Murder Conspiracies Involving Little Village False Identification Document RingRead the Press Release
CHICAGO — Three defendants are facing mandatory life imprisonment after a federal jury found them guilty of racketeering conspiracy, murder in aid of racketeering, and related crimes after a six-week trial in U.S. District Court. Two brothers, JULIO and MANUEL LEIJASANCHEZ, who operated a lucrative, black-market counterfeit identification document business in Chicago’s Little Village community for at least 15 years, were convicted along with GERARDO SALAZAR-RODRIGUEZ, who they directed to commit an execution-style murder in Mexico of a fledgling competitor. The murder plot was intended to prevent two former employees from starting a competing business and to maintain control over employees of their operation, which generated annual revenues of approximately $3 million.
Evidence at trial showed that Salazar-Rodriguez fired more than a dozen shots in killing one of the victims in his taxi cab near Mexico City in April 2007, and the jury heard transcripts of intercepted telephone conversations in which he boasted to the brothers after the murder. He also hunted for a second victim who he believed was in Mexico at the time but who was actually in federal custody in Chicago. That intended victim, who pleaded guilty to fraudulent identification document charges, cooperated and testified as a government witness at trial.
After the jury returned guilty verdicts on all counts yesterday afternoon, the trial ended today when the jury returned special findings regarding the murder that raised the maximum penalty for racketeering conspiracy to life in prison. The murder in aid of racketeering conviction carries a mandatory life sentence for all three defendants. U.S. District Judge Rebecca Pallmeyer scheduled sentencing for Sept. 12.
“This violent conspiracy went to great lengths to corner the fake document market in Chicago, going so far as to murder a rival vendor in order to protect their lucrative turf,” said Gary Hartwig, Special Agent-in-Charge of HSI in Chicago. “The guilty verdicts clearly demonstrate our unyielding resolve to dismantle the criminal organizations that perpetuate and profit from document fraud within our borders.”
The trial and convictions stem from Operation Paper Tiger, an investigation conducted by Homeland Security Investigations agents, along with other local, state, and federal law enforcement agencies. In April 2007, the investigation resulted in charges against 24 defendants and the dismantling of the Leija-Sanchez fraudulent document organization that operated in and around the Little Village Discount Mall at West 26th and Albany in Chicago. Except for the three trial defendants and three fugitives, all of the remaining defendants were convicted.
Manuel Leija-Sanchez, 45, and Salazar-Rodriguez, 40, were arrested later in Mexico and were extradited to the United States in 2010 and 2011 to stand trial, together with Julio Leija- Sanchez, 37, who was arrested in Chicago in 2007. A third Leija-Sanchez brother, Pedro, 40, was also arrested in Mexico and extradited to the U.S in 2011. He pleaded guilty last August to racketeering conspiracy for operating the fraudulent ID ring with his brothers and is awaiting imposition of an agreed sentence of 20 years in prison, currently scheduled for March 13.
Evidence at trial showed that the three Leija-Sanchez brothers operated the bustling illegal business between 1993 and 2007. The Mexico-based organization was supervised by an overall leader living in Chicago, and the leadership position rotated among the Leija-Sanchez brothers. The organization sold as many as 100 sets of fraudulent identification documents each day, charging customers approximately $200 per “set,” consisting of a Social Security card and either an immigration “green card” or a state driver’s license.
Manuel and Julio Leija-Sanchez and Salazar-Rodriguez conspired to murder Guillermo Jimenez-Flores, also known as “Montes,” a former member of their organization who became a fledgling rival and was shot to death by Salazar-Rodriguez in Mexico in April 2007. The three trial defendants also were convicted of conspiracy to kill a second victim, Bruno Freddy Ramirez-Camela, who they believed was in Mexico but was actually incarcerated in Chicago.
The convictions were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. He commended the years of hard work by HSI agents, who were joined in the investigation by the Chicago and Galveston, Tex., police departments and the Chicago offices of the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Government of Mexico and Mexican law enforcement partners also provided significant assistance.
The government is being represented by Assistant U.S. Attorneys Michelle Nasser, Andrew Porter and William Ridgway.
Bosnian Woman Charged with Naturalization FraudRead the Press Release
A grand jury returned a two-count indictment charging Divna Maslenjak, 50, with naturalization fraud and misuse of evidence of naturalization, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Maslenjak, while a citizen of Bosnia Herzegovina, made material false statements in her application and interview for naturalization by failing to acknowledge she had lied to government officials when applying for her refugee status.
The indictment further alleges that Maslenjak used her unlawfully obtained naturalization as a basis for assisting her husband in securing his lawful permanent resident status based upon their marriage.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Margaret Sweeney, following investigation by agents of the U.S. Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Belleview Man Sentenced to Four Years in Federal Prison for Possession of Child PornographyRead the Press Release
Ocala, FL - U.S. District Judge Charlene Edwards Honeywell today sentenced Ronald E. Slauson (73, Belleview) to 4 years in federal prison, followed by ten years of supervised release, for possession of child pornography. The court also ordered Slauson to forfeit computers and computer items relating to such criminal activity. Slauson pleaded guilty on November 12, 2012.
According to court documents, on May 8, 2012, a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations was conducting an online investigation into the possession of child pornography. The agent identified an Internet Protocol (IP) address that was being used for sharing videos and images of suspected child pornography. During the investigation, the agent was able to determine that the internet subscriber was Ronald Slauson. On September 7, 2012, a federal search warrant was executed at Slauson's Belleview residence, and computers and computer storage items were seized. Subsequent computer forensic examinations revealed that Slauson was in possession of approximately 1,498 videos approximately 2,860 images of child pornography. This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Sam Armstrong.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Baltimore Felon Exiled to over 11 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jermaine Miller, age 29, of Baltimore, today to 134 months in prison followed by three years of supervised release for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on June 7, 2010 Baltimore police officers saw Miller exit an alley from the 1800 block of Rutland Avenue, Baltimore. When Miller saw the police officers, he popped an object into his mouth. The police officers ordered Miller to spit out the object, which was found to be a gel cap containing heroin. Miller was arrested and four additional gel caps containing heroin were seized from Miller. A search warrant was executed at Miller’s residence and police seized a plastic baggie containing nine individual baggies of cocaine along with a .357 revolver and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorneys Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Architect of Fraudulent Gold Futures Trading Investment Scheme Sentenced to Nearly Ten Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Terry Vernon Koontz (56, Apollo Beach) yesterday to 9 years and 7 months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also ordered the forfeiture of a $50,000 cashier's check, which is traceable to proceeds of the fraud scheme, and a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
According to court documents, from about December 2010, through November 2011, Koontz and a co-conspirator developed a plan to use false and fraudulent representations, pretenses and promises to solicit victim-investors to wire funds into bank accounts which they controlled. The accounts were for investment in a purported gold futures investment program supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To facilitate the scheme, conspirators utilized an unincorporated Florida entity (CK&K), in Tampa. Koontz was the primary architect of the fraud scheme.
In late January 2011, conspirators opened a bank account in the name of CK & K to be used to receive victim-investors’ funds. During the same time frame, Koontz and co-conspirators began soliciting prospective victim-investors to invest in the purported gold futures investment program. Once convinced to participate, Koontz or co-conspirators directed the victim-investor to transmit his or her funds, via wire and other means, to the CK & K account.
In an effort to enhance the appearance of the fraudulent investment program, Koontz created false and fraudulent documents, including promissory notes and assignments of collateral, which supposedly evidenced and guaranteed the victim-investors’ participation in the investment program. In preparing these documents, Koontz used the names and signatures of various existing foreign and/or domestic entities, without such entities’ and individuals’ knowledge or consent. The promissory notes also guaranteed a rate of return, usually ranging between three and six percent, each month. After a victim-investor wired his or her investment funds, Koontz and/or co-conspirators caused a false and fraudulent promissory note and assignment of collateral to be sent, via FedEx, from either Tampa or Ft. Myers, to the victim-investor. Most of the victim-investors resided outside of Florida.
As the fraudulent investment program grew, Koontz and co-conspirators organized and hosted live presentations, conducted via conference call, to solicit more prospective victim-investors. Some of the presentations were recorded for later access by other prospects. At times, Koontz falsely posed as a satisfied investor and gave a testimonial touting the success of the fraudulent investment program. He also portrayed himself as a close personal friend and professional associate of the founder of the existing New York-based investment firm Paulson & Co., Inc., to persuade the prospective victim-investor to participate in the purported gold futures investment program.
Koontz and co-conspirators used the victim-investors’ funds to perpetuate the fraud scheme and for the personal enrichment of themselves, their family members, and friends. Specifically, they purchased motor vehicles, real property, home furnishings, jewelry, and other goods and services. Funds invested by later victim-investors were used to make interest payments to earlier victim-investors in order to make it appear that the investment program was performing as represented. Other such funds were used to pay expenses associated with operating the fraud scheme, including, but not limited to, office rents, wire transfer fees, and FedEx fees.
On January 30, 2013, U.S. District Judge Susan C. Bucklew sentenced co-conspirators John Henley Fowler (64, Ft. Myers) to 70 months in federal prison for conspiracy to commit mail fraud and wire fraud, and Jeffrey Robert Fowler (35, Ft. Myers) to 37 months in federal prison on a similar charge. The court also ordered the Fowlers to forfeit bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme, and the court entered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
This case was investigated by the Federal Bureau of Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
83 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – On March 1st, 2012, a federal grand jury returned two separate indictments against 83 individuals as a result of two investigations led by the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
According to the first indictment, 41 defendants are charged with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Dr. López Sicardó Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Gregorio Cardenas-Marquez, (aka “Tio”, “Gre”), who directly controlled the drug trafficking activities. Cardenas- Marquez also purchased and transported wholesale amounts of narcotics that were delivered to co-conspirators for further distribution at the drug points.
The 41 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, six drug point owners (including the leader), one supplier, two enforcers, four runners, 25 sellers and three facilitators.
It was further part of the manner and means of the conspiracy that a co-conspirator prepared and possessed a list of the rules that were to be followed at all times by the members of the drug trafficking organization. The rules included the following: shifts were not to be changed without authorization; those who were not scheduled to work should not show up at the drug point; look-outs had to be paid for their work; all members should have a scanner; a maximum of two “materials” (narcotics) should be distributed at each drug point; customers should be allowed to request what narcotics they want to purchase, without taking money from their hands; and members of the organization were not allowed to fight against each other.
It was further a part of the manner and means of the conspiracy that during the course of the conspiracy, basketball games were organized by the co-conspirators in which the teams of various drug points were identified by the same color used to label the drugs or “material” that they worked with or owned. In addition, the members of the drug trafficking organization would possess, carry, use, brandish and/or use firearms in order to protect themselves and their drug trafficking business. Ten members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
The second indictment charges 42 defendants with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Los Peña Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Evelio Rosario-Rosado, aka “Casper”, “Cuquito”, “Cuqui”, “El Boss”.
The 42 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, four drug point owners (including the leader), four runners, 29 sellers and five facilitators. Eight members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
Both drug trafficking organizations face a narcotics forfeiture allegation of 10 million dollars.
“The criminal activity laid out in these indictments is extensive, however, our commitment to continue our fight against these offenders is unwavering,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This extensive investigation has taken dangerous drug traffickers off our streets, and they will face justice for their crimes.”
“Today’s arrests stand as a warning to those individuals whose greed drives them to pollute our streets and schools with poisonous contraband. Our message to drug vendors is – deal at your own risk. We are going to find you and you are going pay a severe and certain penalty in federal court,” said Pedro Janer, DEA Acting Special Agent in Charge for the Caribbean Division.
This case is being prosecuted by Assistant United States Attorney Teresa Zapata-Valladares.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Monday 4 March 2013
Wounded Knee Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota man has been indicted by a federal grand jury for allegedly using a hard object to cause serious bodily injury to a female at Wounded Knee on December 28, 2012.
Lyle Sutton, Jr., age 26, was indicted by a federal grand jury on February 20, 2013 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Sutton appeared before U.S. Magistrate Judge Veronica L. Duffy on February 26, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction for each charge is 10 years of imprisonment and a $250,000 fine. The charges are merely accusations and Sutton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Wayne Venhuizen and Sarah Collins are prosecuting the case.
Sutton was remanded to the custody of the U.S. Marshal. A trial date has been set for May 7, 2013.
Two Sentenced for Trafficking Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that two people from Rapid City, South Dakota convicted of Trafficking in Counterfeit Goods and Services were sentenced on February 22, 2013 by Chief U.S. District Judge Jeffrey L. Viken.
Ravaye Meltzer, age 34, and Bar Braver, age 29, were both sentenced to 1 year of probation, ordered to pay $100 to the Victim Assistance Fund, and forfeited their rights in approximately $300,000 in bank accounts and goods.
Between February 2010 and August 2011, Meltzer and Braver intentionally sold counterfeit goods near Rapid City, Keystone, Deadwood, Hill City, and Sturgis. The sale of the counterfeit goods violated the trademarks held by Monster Energy, Angry Birds, Hollister, The North Face, and Ed Hardy.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Two Pill Dealers Sentenced to Federal Prison for Oxycodone Distribution ConspiracyRead the Press Release
Defendants brought thousands of pills from Detroit and distributed them in Huntington
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that two pill dealers were sentenced to a total of more than eleven years in federal prison for selling prescription painkillers. Joseph Dre Moore, also known as “Tay,” 33, of Huntington, was sentenced to seven years and three months in prison. Moore admitted that beginning in late summer 2009, he was involved in an illegal pill distribution scheme in and around Huntington, W.Va. Moore admitted that during the scheme, he obtained pills from Detroit, Michigan or from individuals with ties to sources in Detroit. Moore further admitted that on September 22, 2009, he directed a known individual to distribute nine 80-milligram oxycodone tablets to a confidential informant working for the Huntington Violent Crimes and Drug Task Force. The transaction occurred near 14th Street and Adams Avenue in Huntington. Moore also admitted that in December 2009, he began using a Huntington residence to store and distribute controlled substances including marijuana, crack cocaine, and oxycodone. Moore admitted that he sold approximately 30 80-milligram oxycodone tablets per month for at least two months.
In a separate hearing today, Moore’s co-defendant Rita Evette Johnson, 33, of Detroit, was sentenced to three years and ten months in prison. Johnson admitted that she became involved in the illegal pill conspiracy during the spring of 2011. Johnson admitted that she typically obtained pills from Detroit and shipped them to co-defendant Moore in Huntington. Johnson further admitted that in the spring of 2011, she arranged for approximately 2,700 30-milligram oxycodone tablets to be sent to co-defendant Moore. Johnson also admitted that she recruited an individual to carry 600 30-milligram oxycodone tablets and 90 40-milligram oxycodone tablets by commercial bus from Detroit to co-defendant Moore in Huntington. Moore also admitted his participation in the pill drop-off scheme.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecutions. The sentences were imposed by United States District Chief Judge Robert C. Chambers.
The cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Two Leaders of the Newburgh Latin Kings Found Guilty in White Plains Federal Court of Three Murders, Racketeering, Drug, Firearms, and Witness Tampering ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, a/k/a “King Gunz,” and CHRISTIAN SANCHEZ, a/k/a “King Chi Chi,” leaders of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), were found guilty today before U.S. District Judge Cathy Seibel in White Plains federal court of 29 counts, including murder, racketeering, drug, firearms, and witness tampering charges, after a six-week jury trial. Judge Seibel set July 11, 2013 for sentencing, at which time PAGAN and SANCHEZ will both face mandatory terms of life in prison.
PAGAN and SANCHEZ are two of 35 members and associates of the Newburgh Latin Kings originally indicted in connection with the case, all of whom have been convicted. Among other charges, PAGAN was found guilty of the May 6, 2008 murder of Jeffrey Zachary, and SANCHEZ was found guilty of the March 11, 2010 murder of Jerome Scarlett, a/k/a “Rudeboy,” and the murder of John Maldonado, a/k/a “Tarzan,” less than 24 hours later, on March 12, 2010.
“U.S. Attorney Preet Bharara stated: For far too long, the residents of Newburgh were plagued by lethal violence and narcotics trafficking at the hands of these two defendants and their cronies, and in just nine hours, the jury unanimously found them guilty of a catalogue of crimes, including the tragic murder of an innocent 15-year-old boy who was in the wrong place at the wrong time. Their reign of terror is now over for good and everyone can breathe easier as a result. Today’s guilty verdicts are the latest example of how we are making good on our promise to eradicate the scourge of gangs and to give neighborhoods back to their residents, and together with our federal, state, and local law enforcement partners, we will continue our fight.”
According to the evidence at trial before Judge Seibel:
Between 2007 and 2011, the Newburgh Latin Kings and their trusted associates sold crack cocaine, heroin, powder cocaine, and marijuana at drug spots in Newburgh, including the areas of Benkard Avenue and William Street, and South Miller Street and Broadway. Gang members and associates protected the gang’s drug turf, drugs, and drug money, with guns and violence. The violence included frequent shootings, stabbings, and assaults of rival drug dealers, including members of another gang in Newburgh known as the Bloods, as well as witnesses and suspected Government witnesses within their own gang.
The Newburgh Latin Kings were governed by a council of five officers, who were referred to as crowns (collectively, the “Crown Council”). PAGAN and SANCHEZ each served as the First Crown, and overall head of the Newburgh Latin Kings -- PAGAN from 2008 through January 2010 and SANCHEZ from February 2010 through February 2011.
The Newburgh Latin Kings had regular chapter meetings at which attendance was mandatory and members were required to pay dues. At the meetings, members discussed their criminal activities and alleged transgressions of chapter rules. They also directed punishments, known as “violations,” against members who were determined to have committed transgressions. Furthermore, at the meetings the Newburgh Latin Kings discussed conflicts with other gangs. In some instances, the Crown Council used meetings to order attacks on individuals and rival gangs.
On May 6, 2008, two members of the Newburgh Latin Kings were ordered by PAGAN and another leader of the gang to shoot a member of the Bloods on Dubois Street in Newburgh. The members of the gang then drove to the vicinity of Dubois Street and shot at individuals they mistakenly believed were members of the Bloods, including Jeffrey Zachary, a 15-year old, who was shot and killed.
The Latin Kings violence continued after the Zachary murder, and included a violent altercation on November 1, 2008 when PAGAN ordered other members of the Latin Kings to bring a gun to South Miller Street in Newburgh, resulting in another member of the gang discharging a gun; the stabbing of a gang member, on orders from PAGAN, in January 2010; and the attempted stabbing of a gang member, who was believed cooperating with law enforcement, on orders from SANCHEZ in February 2010.
The violence culminated in March 2010 with the shooting deaths of Scarlett and Maldonado on back-to-back nights of bloodshed. SANCHEZ along with other leaders of the Newburgh Latin Kings ordered the murder of Maldonado. SANCHEZ spoke on the phone with other members of the gang at they walked Maldonado to the intersection of Benkard and Little Monument Street, where a shooter, recruited by gang members that same day, lay in wait to gun Maldonado down. After the shooting, the same leaders of the gang spoke to SANCHEZ on the phone as they stood over Maldonado, who lay dying in the street.
Finally, in September 2010, SANCHEZ shot another member of the gang during a violent confrontation over the leadership of the gang.
The investigation resulting in the prosecution of members and associates of the Newburgh Latin Kings was conducted by the Federal Bureau of Investigation’s (“FBI”) Hudson Valley Safe Streets Task Force, which combined the efforts of dozens of law enforcement officers from federal, state, and local agencies and departments, including agents and officers with the FBI, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the City of Newburgh Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the Middletown Police Department, the Orange County Sheriff’s Office, the New York State Police, and the Town of Newburgh Police Department. Mr. Bharara thanked the member agencies of the Task Force for their work in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Nicholas McQuaid, Benjamin Allee, and Abigail Kurland are in charge of the prosecution.
U.S. v. Wilson Pagan, et al. S20 Indictment
Two Grey Hills, N.M., Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Erick McDonald, 21, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., entered a guilty plea this morning to abusive sexual contact charges under a plea agreement with the U.S. Attorney’s Office.
During his plea hearing, McDonald pled guilty to a two-count information charging him with abusive sexual contact with a six-year-old Indian child and a 12-year-old Indian child on Sept. 19, 2012. In entering his guilty plea, McDonald admitted that he intentionally touched the genitals and other body parts of the two victims to gratify his sexual desire. Court records reflect that McDonald’s unlawful conduct occurred in a residence on the Navajo Indian Reservation.
McDonald has been in federal custody since his arrest on Oct. 9, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, McDonald faces a maximum penalty of three years of imprisonment for abusing the 12-year-old victim and six years of imprisonment for abusing the six-year-old victim. McDonald also will be required to register as a sex offender.
The case was investigated by the Albuquerque and the Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Three Philippine Nationals Convicted in Los Angeles of Importing Military Grade WeaponsRead the Press Release
Three Philippine nationals were convicted today in Los Angeles of illegally importing military grade weapons into the United States after being caught in a sting operation that was conducted in the Philippines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Bill Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office.
Sergio Syjuco, 26, Cesar Ubaldo, 27, and Arjyl Revereza, 26, each of the Philippines, were convicted after a four-week trial by a federal jury in U.S. District Court in the Central District of California of conspiring to illegally import the weapons into the United States, and aiding and abetting the importation of those weapons. The defendants were charged in an indictment filed on Jan. 12, 2012.
According to the evidence presented at trial, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. In November 2010, Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of the illegal weapons through Philippines customs and eventually into the United States. The weapons supplied included a rocket propelled grenade launcher, a mortar launcher, an M203 single-shot grenade launcher and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The trial evidence demonstrated that the defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed in Long Beach, Calif., on June 7, 2011, where they were seized by the FBI.
At sentencing, which is scheduled for June 10, 2013, each defendant faces a maximum potential penalty of five years in prison and a $250,000 fine for conspiracy to import weapons into the United States, as well as 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons, excluding the 12 fully automatic Bushmaster firearms. In addition, defendants Syjuco and Revereza face a maximum potential penalty of 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons in this case, and five years in prison and a $250,000 fine for causing the importation of the 12 fully automatic Bushmaster firearms in this case.
The investigation was conducted by agents and investigators of the FBI, the U.S. Secret Service and the Philippine National Bureau of Investigation. Deputy Chief Kim Dammers and Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Three Individuals on Trial Plead Guilty, Admit Roles in Investment Fraud SchemesRead the Press Release
March 4, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that three individuals who had been on trial in Hartford federal court have pleaded guilty to various offenses stemming from two separate investment schemes.
On February 25, ROBERT RIVERNIDER, 47, of Wellington, Fla., pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and his sister, LORETTA SENECA, 50, of Boynton Beach, Fla., pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, ROBERT PONTE, 59, of Stonington, Conn., pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion. The trial before United States District Judge Robert N. Chatigny began on February 7.
“As the overwhelming evidence in this trial revealed, Rivernider and Ponte recruited individuals to invest their money by making false promises of guaranteed, high returns,” stated U.S. Attorney Fein. “Their investment program was nothing more than a Ponzi scheme, which left several investors in financial ruin. With the assistance of Ms. Seneca, these defendants also engaged in a real estate investment scheme that defrauded more individuals, as well as lending institutions. The U.S. Attorney’s Office is committed to working with the FBI, IRS-CI and our other law enforcement partners to root out financial schemes to protect the investing public.”
“The FBI conducted an extensive investigation into the various conspiracies orchestrated by the three defendants, conspiracies designed with no goal other than to enrich themselves at the expense of other individuals and banks alike,” stated FBI Special Agent in Charge Mertz. “Cases like this are only successful with the teamwork of our federal partners. The IRS was instrumental to this investigation, as was the United States Attorney’s Office, which was exceptional in presenting a case at trial that resulted in three guilty pleas before even concluding its case.”
According to court documents and the evidence disclosed during the trial, between approximately June 2005 and April 2008, RIVERNIDER and PONTE conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments. As part of the conspiracy, RIVERNIDER and PONTE used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that PONTE established. With the “No More Bills” program, RIVERNIDER and PONTE sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
RIVERNIDER and PONTE materially misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, RIVERNIDER and PONTE used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost at least $3 million.
In a second scheme, between approximately November 2006 and December 2007, RIVERNIDER, PONTE, and SENECA engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. As part of the scheme, RIVERNIDER, PONTE, and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. RIVERNIDER and PONTE typically represented to borrowers that these properties would be passive investments and that PONTE and RIVERNIDER would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that RIVERNIDER and PONTE would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, RIVERNIDER and PONTE frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. RIVERNIDER, PONTE and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
RIVERNIDER, PONTE, SENECA and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. SENECA, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by RIVERNIDER to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions have suffered nearly $20 million in losses.
When they are sentenced, RIVERNIDER and PONTE face a maximum term of imprisonment of 20 years for conspiring on the first investment fraud scheme, and RIVERNIDER, PONTE and SENECA face a maximum term of imprisonment of 30 years for conspiring on the real estate investment scheme. The wire fraud charges also carry maximum terms of imprisonment of 20 or 30 years. In addition, the tax evasion counts against PONTE carry a maximum term of imprisonment of five years on each count.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys John H. Durham and Christopher W. Schmeisser.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Family Members and Associate Sentenced for Moundsville Pill RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - Chief Judge John Preston Bailey sentenced four members of a Moundsville pill conspiracy last week, including three family members, in United States District Court in Wheeling.
United States Attorney William J. Ihlenfeld, II, announced that:
Two of the defendants who were brothers, Carl William Goddard Jr., age 49, and John Harvey Goddard Sr., age 47, both of Moundsville, were sentenced to 46 and 21 months respectively for their December pleas of guilty to “Conspiracy to Distribute Schedule II pills.” The other defendants were John Harvey Goddard Jr., age 26 of Moundsville, and Roy C. Crow, age 27, of New Martinsville, who received sentences of 15 and 21 months for their pleas to “Distribution of Oxycodone.” John Jr.’s federal sentence is not to start until he completes a state 1 -10 year sentence for parole violation. Each of the defendants are also subject to a 3 year term of supervised release after their release from prison.
The convictions are the result of part of a multi-agency investigation by the Marshall County Drug Task Force, the West Virginia State Police, and DEA into drug distribution from the Goddard’s residence in Moundsville. During the investigation 13 controlled buys of pills were made of oxycodone and morphine, the majority of which occurred from the residence, culminating in the execution of federal search warrants in October, 2012. Evidence from the investigation revealed the group was responsible for distributing at least 500 oxycodone pills.
As part of the pleas, the residence is being forfeited along with $2,280 in drug proceeds seized during the search warrant execution.
All 4 defendants were remanded to the United States Marshall’s custody. A trial remains set in June for the remaining defendant, another family member.
This case was prosecuted by Assistant United States Attorney John C. Parr.
The Executive Office for Immigration Review Swears in Two Immigration JudgesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the investiture of two immigration judges. Deputy Chief Immigration Judge Michael C. McGoings presided over the investiture during a ceremony held at EOIR’s headquarters on March 1, 2013.
After a thorough application process, Attorney General Eric Holder appointed Craig A. Harlow and Sunita B. Mahtabfar to their new positions. “The efficient and timely adjudication of detained aliens’ cases are the highest priority for EOIR,” said McGoings. “The addition of Mr. Harlow and Ms. Mahtabfar to our immigration judge corps will allow us to better address our detained caseload.”
Biographical information follows.
Craig A. Harlow, Immigration Judge, Pearsall Immigration Court
Attorney General Eric Holder appointed Judge Harlow in February 2013. Judge Harlow received a bachelor of arts degree in 1989 from Lubbock Christian University in Lubbock, Texas, and a juris doctorate in 1992 from St. Mary’s University School of Law in San Antonio. From June 2012 to February 2013, he served as an assistant chief counsel, Office of Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Dallas. From October 2010 to May 2012, Judge Harlow served as deputy chief counsel for ICE in Oakdale, La. From September 2007 to September 2010, he was the senior attorney for the New Orleans Office of Chief Counsel. From October 1992 to August 2007, Judge Harlow was an assistant chief counsel for ICE in Oakdale, entering on duty through the Attorney General’ s Honors Program. From May 1991 to August 1991, he was a summer law intern in the Oakdale Immigration Court. Judge Harlow is a member of the State Bar of Texas.
Sunita B. Mahtabfar, Immigration Judge, El Paso Service Processing Center
Attorney General Eric Holder appointed Judge Mahtabfar in February 2013. Judge Mahtabfar received a bachelor of arts degree in 1994 from the University of Texas at Austin in Austin, Texas, and a juris doctorate in 1998 from Thurgood Marshall School of Law in Houston. From November 2006 to February 2013, she served as an attorney in the Office of the Assistant Chief Counsel, U.S. Customs and Border Protection, Department of Homeland Security (DHS), in El Paso, Texas. From February 2003 to November 2006, she served as an asylum officer for U.S. Citizenship and Immigration Services, DHS, in Houston. From June 2000 to February 2003, Judge Mahtabfar served as a staff attorney for the Department of Public Safety in Houston. Judge Mahtabfar is a member of the State Bar of Texas.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Tarrant County Man Sentenced to 180 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Walter Eugene Rogers, 33, of Watauga, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 180 months in federal prison and a five-year term of supervised release, following his guilty plea in November 2012 to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Rogers has been in custody since he was arrested in Georgia by officers with the Tallapoosa Police Department on a related charge outlined in a criminal complaint.
According to documents filed in the case, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), conducting an undercover investigation to identify persons involved in the distribution of child pornography through the use of peer-to-peer file sharing networks, identified a particular computer that was sharing images of child pornography. The undercover agent downloaded some of the more than 384 files available for sharing that had names indicative of child pornography, and found that they did contain images of child pornography.
Based on the downloaded images, a warrant was executed at Rogers’ home in Watauga in November 2011 and agents seized a computer and related storage devices, as well as a bag of printed child pornography images. Rogers admitted that he had been downloading child pornography since the mid-1990's and that he is attracted to boys 9-12 years of age. Rogers also admitted that he had images and videos of sex acts, bondage and other sadistic acts involving children, and that he had downloaded child pornography just a few hours before agents arrived that day.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated the case; Assistant U.S. Attorney Camille Sparks prosecuted.
Swiss Bank Sentenced in Manhattan Federal Court for Conspiring to Evade TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, announced that WEGELIN & CO. (“WEGELIN”), a Swiss private bank, was sentenced today and ordered to pay approximately $58 million to the United States for conspiring with U.S. taxpayers and others to hide approximately $1.5 billion in secret Swiss bank accounts, and the income generated in the accounts, from the Internal Revenue Service (the “IRS”). Together with the April 2012 forfeiture of more than $16.2 million from WEGELIN’s U.S. correspondent bank account, this amounts to a total recovery to the United States of approximately $74 million. WEGELIN pled guilty in January 2013 to one count of conspiracy to defraud the IRS, file false federal income tax returns, and evade federal income taxes before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence. This case represents the first time that a foreign bank has been indicted for facilitating tax evasion by U.S. taxpayers and the first guilty plea and sentencing of such a bank.
Manhattan U.S. Attorney Preet Bharara said: “Wegelin has now paid a steep price for aiding and abetting tax fraud that should be heeded by other banks, bankers, and advisers who engage in the same conduct. U.S. taxpayers with undeclared accounts – wherever those accounts may be – should know that their bank may be next, and they should pay what they owe the IRS before we come find them.”
Assistant Attorney General Keneally said: “When the IRS offered the opportunity to come into compliance through the Offshore Voluntary Disclosure Initiative, some people thought that they could beat the system by instead looking for banks that promised further concealment. We are following that money, and time is rapidly running out for taxpayers who think that they can still hide.”
According to the Superseding Indictment, the forfeiture Complaint filed against the funds in WEGELIN’s correspondent bank account, other court documents filed in the case, and statements made during the guilty plea and sentencing proceedings:
Founded in 1741, WEGELIN is Switzerland’s oldest bank. It provided private banking, asset management, and other services to clients around the world, including U.S. taxpayers living in the Southern District of New York. WEGELIN had no branches outside Switzerland, but it directly accessed the U.S. banking system through a correspondent bank account that it held at UBS AG (“UBS”) in Stamford, Connecticut. As of December 2010, WEGELIN had approximately $25 billion in assets under management.
From 2002 through 2011, WEGELIN conspired with various U.S. taxpayers and others, to hide from the IRS the existence of bank accounts held at WEGELIN, and the income generated in those secret accounts. WEGELIN carried out this scheme through client advisers and others.
In 2008 and 2009, WEGELIN opened and serviced dozens of new undeclared accounts for U.S. taxpayers in an effort to capture clients lost by UBS in the wake of widespread news reports that UBS was being investigated by U.S. authorities for helping U.S. taxpayers evade taxes and hide assets in Swiss bank accounts. By mid-2008, UBS had stopped servicing undeclared accounts for U.S. taxpayers, and WEGELIN took a number of steps to capitalize on the opportunity to assist U.S. taxpayers hide their assets from the U.S. government.
To further the goals of the conspiracy from 2002 through 2011, WEGELIN took steps that included the following:
- Opening and servicing undeclared accounts for U.S. taxpayer-clients in the names of sham corporations and foundations formed under the laws of Liechtenstein, Panama, Hong Kong, and other jurisdictions for the purpose of concealing some clients’ identities from the IRS;
- Accepting documents that falsely declared that the sham entities were the beneficial owners of certain accounts, when in fact the accounts were beneficially owned by U.S. taxpayers, and making the false documents part of WEGELIN’s client files;
- Permitting certain U.S. taxpayer-clients to open and maintain undeclared accounts at WEGELIN using code names and numbers to minimize references to the actual names of the U.S. taxpayers on Swiss bank documents;
- Ensuring that account statements and other mail for U.S. taxpayer-clients were not mailed to them in the United States;
- Communicating with some U.S. taxpayer-clients using their personal email accounts to reduce the risk of detection by law enforcement; and
- Issuing checks drawn on, and executing wire transfers through, its U.S. correspondent bank account for the benefit of U.S. taxpayers with undeclared accounts at WEGELIN and at least two other Swiss banks. In so doing, WEGELIN sometimes separated the transactions into batches of checks or multiple wire transfers in amounts that were less than $10,000 to reduce the risk that the IRS would detect the undeclared accounts.
At the time of Wegelin’s guilty plea before Judge Rakoff on January 3, 2013, Wegelin managing partner Otto Bruderer admitted on behalf of Wegelin that “[f]rom about 2002 through about 2010, Wegelin agreed with certain U.S. taxpayers to evade the U.S. tax obligations of these U.S. taxpayer clients, who, among other things, filed false tax returns with the IRS.” Bruderer also admitted that “[i]n furtherance of its agreement to assist U.S. taxpayers to commit tax evasion in the United States, Wegelin opened and maintained accounts at Wegelin in Switzerland for U.S. taxpayers who did not complete W-9 tax disclosure forms,” which are IRS forms U.S. taxpayers can use to identify themselves as such to a bank, thereby causing the bank to report income generated in the U.S. taxpayers’ account to the IRS. Bruderer further admitted that “Wegelin knew that certain U.S. taxpayers were maintaining non-W-9 accounts at Wegelin in order to evade their U.S. tax obligations, in violation of U.S. law, and Wegelin knew of the high probability that other U.S. taxpayers who held non-W-9 accounts at Wegelin also did so for the same unlawful purpose.” Bruderer also admitted that “Wegelin intentionally opened and maintained non W-9 accounts for [certain U.S.] taxpayers with the knowledge that, by doing so, Wegelin was assisting these taxpayers in violating their legal duties” and that “Wegelin was aware that this conduct was wrong.”
U.S. taxpayers are required to report the existence of any foreign bank account on their federal income tax returns if it holds more than $10,000 at any time during a given year, as well as any income it earns.
By the end of 2009, the collective maximum value of the assets in undeclared accounts beneficially owned by U.S. taxpayer-clients of WEGELIN was approximately $1.5 billion, with many accounts holding more than $10,000 in any one year.
The April 2012 forfeiture of approximately $16.2 million from WEGELIN’s correspondent bank account was the result of a civil forfeiture Complaint filed in February 2012. As alleged in the Complaint, WEGELIN used its correspondent bank account at UBS to help U.S. taxpayers with undeclared accounts repatriate money that they had hidden at WEGELIN. This was often done in a manner designed to evade detection by U.S. authorities. For example, U.S. taxpayers routinely asked WEGELIN to issue and send them checks, which were drawn on WEGELIN’S correspondent bank account, and that represented funds held in their secret accounts at the bank. Further, WEGELIN permitted at least two other Swiss banks to issue checks drawn on its correspondent bank account for the benefit of U.S. taxpayers holding undeclared accounts at these other banks. The sheer volume of transactions in WEGELIN’s correspondent bank account served to conceal the repatriation of money from U.S. taxpayers’ undeclared accounts at WEGELIN and the other banks. On April 24, 2012, U.S. District Judge Laura Taylor Swain entered an order forfeiting over $16.2 million seized from the U.S. correspondent account of WEGELIN. As part of its plea agreement, WEGELIN agreed not to contest the April 2012 forfeiture.
The components of today’s order to pay approximately $58 million to the United States include approximately $20 million in restitution to the IRS; a fine of $22.05 million; and forfeiture in the approximate amount of $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers. Wegelin paid the civil forfeiture amount of $15.8 million to the United States on January 4, 2013.
WEGELIN is headquartered in St. Gallen, Switzerland.
Mr. Bharara praised the outstanding efforts of Internal Revenue Service, Criminal Investigation in the investigation. He also thanked the U.S. Department of Justice’s Tax Division and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Foreign Corruption Investigations Group for their significant assistance in the investigation.
This criminal case is being handled by the Office’s Complex Frauds Unit and the civil forfeiture proceedings are being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys David B. Massey, Daniel W. Levy, and Jason H. Cowley are in charge of the prosecution and civil forfeiture proceedings.
Charges remain pending against client advisers Michael Berlinka, Urs Frei, and Roger Keller, who all reside in Switzerland and have not been arrested. The charges and allegations are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Staff Sergeant Sentenced for Bulk Cash SmugglingRead the Press Release
Elizabeth City - United States Attorney Thomas G. Walker announced that in federal court today TONYA LONG, 30, of Fayetteville, North Carolinawas sentenced to 60 months imprisonment, 3 years of supervised release, and ordered to pay one million dollars in restitution, by United States District Judge Terrence W. Boyle for bulk cash smuggling and aiding and abetting the same, in violation of Title 31, United States Code, Section 5332(a) and Title 18, United States Code, Section 2.
U.S. Attorney Walker stated, “Tonya Long betrayed her team and while other soldiers were fighting for our country, she was stealing money intended to support the mission. Her conduct undermined her fellow soldiers and our nation’s reputation. This sentence demonstrates that conduct like this will not be tolerated.”
According to the Criminal Information filed on September 21, 2012, and information presented in open court, LONG was a Staff Sergeant (E-6) in the United States Army assigned to the 189th Combat Sustainment Battalion (XVIII Airborne Corps) attached to the 7th Special Forces Group for a wartime deployment to Afghanistan. From January 12, 2008, through April 5, 2009, LONG was deployed to Afghanistan under the command of the Combined Joint Special Operations Task Force – Afghanistan, of which the 7th Special Forces Group was a part. During her deployment to Afghanistan, LONG performed duties as a Customs Inspector by inspecting personal property of military service members prior to such property being loaded into containers for shipment back to the United States.
Between January 2009 and February 7, 2009, LONG aided and abetted another military service member in concealing over $1,000,000 by striping the components out of VCR players and then hiding the money inside. LONG cleared the containers through customs herself, and they were then shipped back to the United States in connex shipping containers. Neither LONG nor the other person declared the currency upon entry into the United States. LONG acted with the intent to evade the currency reporting requirements.
LONG spent nearly $500,000 on herself and her family. Some of the items she purchased were a vacation, a car, personal surgeries, and an 18 wheeler truck and trailer.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the United States Department of Army - Criminal Investigation Command, Major Procurement Fraud Unit; the Special Inspector General - Afghanistan Reconstruction; and the Federal Bureau of Investigation. Assistant United States Attorney Banumathi Rangarajan prosecuted the case on behalf of the Eastern District of North Carolina.
St. Francis Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Larceny.
John Swift, age 55, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 27, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 5 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Swift is presumed innocent until and unless proven guilty. The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Swift was released on bond pending trial. A trial date has not been set.
St. Francis Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Orson Black Spotted Horse, age 49, was indicted by a federal grand jury on February 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for April 30, 2013.
Sioux City Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A man who distributed child pornography pled guilty on February 28, 2013, in federal court in Sioux City.
Chad Carver, age 27, from Sioux City, Iowa, was convicted of one count of distribution of child pornography.
At the plea hearing, Carver admitted that, between September 2010 and September 2011, he used the Internet to distribute child pornography.Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Carver remains in custody of the United States Marshal pending sentencing. In a plea agreement, Carver agreed to be sentenced to at least 10 years’ imprisonment. He faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4079.
Sioux City Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
A man who distributed and received child pornography pled guilty on February 25, 2013, in federal court in Sioux City.
Jeffrey Huygens, age 47, from Sioux City, Iowa, was convicted of one count of distribution of child pornography and one count of receipt of child pornography.
At the plea hearing, Huygens admitted that, between September 2011 and December 2011, he used the Internet to distribute child pornography. He also admitted that, between 2002 and March 2012, he used the Internet to receive child pornography. In addition, he admitted that, in 1990, in Island County, Washington, he was convicted of Child Molestation in the First Degree.Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Huygens remains in custody of the United States Marshal pending sentencing. Huygens faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, $500,000 in fines, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4094.
San Diego Man Sentenced for Sex Trafficking of Children; Trafficking Cases up SignificantlyRead the Press Release
San Diego - Carlos Alberto Garcia, who made thousands of dollars pimping out underage girls using internet ads, was sentenced in federal court this morning to 12 years in prison plus 10 years supervised release for sex trafficking of children. Garcia pleaded guilty in August and has been in custody since his arrest on June 26, 2012.
The case began as a result of investigations by San Diego Police Department vice detectives in November 2011 and January 2012. Detectives searched online advertisements for escorts, set up dates and discovered the underage girls working as prostitutes. Garcia was eventually identified as their pimp.
According to court documents, one of the girls, age 17, described Garcia as “ruthless” and “crazy” and said he physically assaulted her for hiding $300. Garcia beat her, stripped her, forced her into a cold shower, poured ice on her, and made her stand in front of an air conditioner.
He then he took her to the Fashion Valley shopping mall and, using the money she’d earned from prostitution, bought himself $685 sneakers at the Gucci store, according to court records.
Human trafficking is the fastest growing criminal industry in the world today. It is second only to drug trafficking on the list of the biggest and most lucrative illicit enterprises.
Last year, the Department of Justice set a new record in the number of defendants charged in human trafficking cases in a single year. And over the last three years, there has been a 30 percent increase in the number of human trafficking cases charged. Human trafficking cases primarily involve sexual slavery or forced labor.
In the Southern District of California, which includes San Diego and Imperial counties, the U.S. Attorney’s office has seen a 600 percent increase in human trafficking cases in the last five years – from just a few to a couple dozen, with scores of defendants charged. Many of these cases involve the sex trafficking of children.
San Diego is a hot spot for these crimes. According to the FBI, this city is among the 13 most active child sex trafficking areas in the nation. Also on the list are Los Angeles and San Francisco.
Here are a few trafficking trends:
-The victims are getting younger. The average entry age of American minors into the sex trade is 12-14 years old. They’re not all runaways from broken homes - they’re plucked from malls and schools and through the internet via social media sites such as Facebook and Twitter.
-Gang members are increasingly dealing in the very lucrative crime of trafficking of young girls, and prosecutors around the country are using the RICO statute against them. Federal prosecutors in San Diego have one case in which a federal grand jury indicted 38 defendants and one LLC on a RICO charge. The indictment also included the criminal forfeiture of a hotel where many of the illegal acts took place.
According to court records, three Oceanside Crips gangs teamed up to operate an elaborate sex trafficking ring using the characteristics of a business enterprise - including deals with hotels and motels. Recruitment efforts focused on vulnerable underage girls. They were manipulated with promises of a luxurious lifestyle, intimidation and actual or threatened violence. A prostitute who broke the “rules” would be beaten or subjected to other humiliating punishments. They were traded to other pimps and transported to other states as if they were someone’s property.
Of the 39 defendants charged, 35 defendants pled guilty, three were dismissed, one was murdered in a gang related shooting. The defendants who pled guilty received sentences as high as 14 years in prison.
“These prosecutions, here and around the country, are yielding sentences that send an unmistakable message that human traffickers who prey on the most vulnerable among us will be brought to justice,” said U.S. Attorney Laura Duffy. “We have a lot of work to do. But together with our law enforcement partners, our work has saved lives and restored dignity to scores of victims. We’ve secured long prison sentences against individual traffickers and dismantled organized criminal enterprises, and we will keep on fighting to obliterate this great human rights tragedy.”
A few other examples of similar cases:
-Maurice Lerome Smith was sentenced in December 2011 to 30 years in prison for sex trafficking of children and by force, fraud and coercion. He was indicted in February, 2011, and was convicted by a jury in May 2011. According to court records, Smith picked up his victim on University Avenue: “Defendant ordered her into the car. (The 17-year-old victim) stated that Defendant told her to get in or she would be ‘in pieces in the trunk.’ Defendant drove (victim) to his residence in Oceanside, physically assaulted her with a belt, and had sex with her. The next morning, Defendant drove her down to the Motel 6 on Clairemont to work as a prostitute. Defendant told her to make $600.00. Defendant booked the room and left her. (The victim) stated she was afraid of Defendant.” Please see 11-cr-0471-BEN-1.
-Jonathan Jamar Sanders was sentenced to 19 years in prison in May 2012 after pleading guilty to sex trafficking of children, aiding and abetting, in January 2012. According to court documents, Sanders met a 15-year-old girl on the street in National City. At first he took her out on dates and started a sexual relationship with her. Then he forced her into prostitution. The girl would later tell federal agents that he’d threatened to beat her if she didn’t do it. She believed him, because she’d seen him violently attack another girl – hitting and kicking her so hard while she was on the ground that her body lifted up from the force. Because of our efforts, that gang member was convicted of sex trafficking of children. Please see 11cr1896-DMS.
-Randy Martell Ballard was sentenced to 12.5 years in prison after pleading guilty in November 2012 to sex trafficking of children. According to court documents, Ballard met a fourteen-year-old girl in El Paso, Texas and transported her to San Diego for the purpose of engaging her in prostitution. He purchased a bus ticket for her using a false name. Court documents further show that Ballard posted online prostitution ads on the Internet with a phone number that the minor had in her possession and provided the minor with false identification documents. Please see 12cr2259-BEN.
-Ralph Darnell Redd was sentenced in February 2012 to 15 years in prison after he was convicted by a jury in July 2011 of sex trafficking of children, sexual exploitation of a minor, and distribution of child pornography. According to court records, he also used internet ads to sell the sexual services of a 16-yearold girl who was tattooed with his moniker. Redd penned an autobiography in which he mentions his gang membership, past crimes and convictions and how “spending the whole 90's in and out of incarceration delayed my process of being successful as a rap artist.” Please see 10cr2740-W.
DEFENDANT Case Number: 12cr2999 Carlos Alberto Garcia SUMMARY OF CHARGETitle 18, United States Code, Sections 1591(a) and (b) - Sex Trafficking of Children
INVESTIGATING AGENCIESSan Diego Police Department
San Diego Jury Finds Defense Contractors Guilty in North Island Bribery CaseRead the Press Release
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DEFENDANTS Case Number: 12cr3320H Robert Ehnow
Joanne Loehr
Age: 46
Age: 52
Coronado, California
La Jolla, CaliforniaCenterline Industrial Inc., a California corporation
SUMMARY OF CHARGES IN CASE NO. 12cr3320HCount 1: Conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (all defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment. (All defendants found guilty on Count One.)
Counts 2 to 7: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ehnow) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendant Ehnow found guilty on Count Seven, not guilty on Counts Two through Six)
Counts 8 to 12: Bribery, in violation of Title 18, United States Code, Section 201 (defendants Loehr and Centerline) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendants Loehr and Centerline found guilty on Counts Ninth through Twelve, not guilty on Count Eight)
Case Number: 12-CR-4071-LAB Sentencing Date: March 4, 2012Kenneth Paul Ramos
Case Number: 12-CR-1055-LAB Sentencing Date: September 10, 2012 Donald Vangundy
Kiet Luc
Brian Delaney
David Lindsay
John Newman
Michael Graven
Paul Grubiss Case Number: 10-CR-3737-LABJesse Denome
INVESTIGATING AGENCIESFederal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service - Criminal Investigation
General Services Administration - Office of Inspector General
Naval Criminal Investigative ServiceSalt Lake City Man Sentenced to 57 Months Imprisonment for Shipping MDMA Pills to Grand Island, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable John M. Gerrard, U.S. District Court Judge, sentenced James Sayavong to 57 months imprisonment, to be followed by 3 years of supervised release, and he was ordered to pay a $100 special assessment, following his conviction for conspiracy to distribute 3,4-methylenedioxymethamphetamine (also known as “MDMA” or “ecstasy”).
Between February of 2007 and April of 2009, Sayavong, who lived in Salt Lake City, Utah, would mail MDMA pills to people who lived in Grand Island, Nebraska. The people in Grand Island would then resell the MDMA pills and send payment back to Sayavong in Salt Lake City. Sayavong was arrested by the Federal Bureau of Investigation in Salt Lake City on March 23, 2012, and brought to Lincoln, Nebraska for prosecution. Sayavong pled guilty on December 6, 2012.
The FBI and the Central Nebraska Drug and Safe Streets Task Force were responsible for the investigation of this case.Rochester Man Sentenced for Distributing Child PornographyRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Joseph Hicks, 45, of Rochester, N.Y., who was convicted of distribution of child pornography, was sentenced to 108 months in federal prison and 20 years of supervised release by U.S. District Judge Charles J. Siragusa. Hicks will also have to register as a sexual offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the prosecution, stated that Hicks was identified by federal agents conducting an undercover child pornography investigation. They executed a search warrant at the defendant’s Rochester residence and seized his computer which contained almost 15,000 images and over 400 movies depicting child pornography. Some of the child pornography images included violence against children, some as young as infants. Law enforcement officers also recovered hundreds of chats between Hicks and other online users from around the world during which he offered to trade child pornography with them. The defendant also gave these other users advice on how to conceal their online activities and how to evade detection by law enforcement.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent In Charge James C. Spero.Repeat and Dangerous Sex Offender Sentenced to 20 Years in Federal PrisonRead the Press Release
Orlando, FL - U. S. District Judge Roy B. Dalton, Jr. sentenced Nicholas Knittig (30, Kansas) today to 20 years’ imprisonment for attempted sexual enticement of a minor, and 10 years’ imprisonment for transfer of obscene material to minors. The sentences were ordered to be served concurrently, followed by a lifetime of supervised release. Knittig was indicted on August 8, 2012. He pleaded guilty on October 31, 2012. As a previously convicted sex offender, Knittig was classified as a repeat and dangerous sex offender against minors.
According to court documents, only two months after serving a 5-year term of supervised release from a previous conviction, Knittig communicated over the Internet with an undercover agent in a St. Johns County (Florida) Sheriff’s Office operation. During the conversation, Knittig reiterated his desire to have sex with children and requested pictures of them. In May 2012, Knittig became the subject of an FBI investigation in Orlando. During that investigation, he continually explained the sexual acts, in graphic detail, he would perform on children. On June 19, 2012, Knittig spoke with both an FBI Undercover (UC) and a second agent who portrayed the UC’s 13 year-old child. Knittig stated his plans to come and visit the UC and the UC’s children during the coming weekend. At the end of the conversation, Knittig told the UC that he would send a picture for the UC to show the UC’s 13-year-old daughter. Subsequently, the UC received an e-mail from Knittig that included a JPEG image of Knittig’s genitalia. In a subsequent investigation conducted by the Alachua (Florida) Police Department, Knittig e-mailed a picture of his genitalia to a UC and another agent posing as a child. During his conversation with the presumed child, Knittig told the UC to make sure that her stepfather showed her the picture.
On or about August 22, 2012, a search warrant was executed at Knittig’s residence in Kansas. A forensic examination of the computer revealed that it contained 96 videos and 326 images of child pornography. The videos depicted boys and girls of varying ages up to 12 years old, including infants.
This case was investigated by the Federal Bureau of Investigation-Orlando, Federal Bureau of Investigation-Kansas, St. Johns County (Florida) Sheriff's Office, and the Alachua (Florida) Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Quincy Man Sentenced for Running Illegal Gambling Business in Boston’s Chinatown, Using Violence to Collect DebtsRead the Press Release
Boston - As part of an ongoing investigation into extortion and illegal gaming in Boston’s Chinatown, a Quincy man was sentenced today for running an illegal gambling business. The investigation included a court-authorized wiretap on the defendant’s phone and a series of consensual video-recordings made inside gambling dens.
Minh Cam Luong, a/k/a “Ming Jai,” 48, was sentenced by U.S. District Chief Judge Patti Saris to 84 months in prison to be followed by three years of supervised release, forfeiture pursuant to the agreed forfeiture orders, and a special assessment in the amount of $1,100. Luong pleaded guilty in September 2012 to an 11-count-indictment charging him with running an illegal gambling business and using threats of violence, and actual violence, to collect debts from gamblers and others who borrowed money. Judge Saris imposed the sentence today at the end of a three-day evidentiary sentencing hearing. The sentence represented an upward departure from the Guideline range as Judge Saris had calculated it. She based her upward departure on Luong’s “appalling” threats of violence and use of actual violence to terrify his numerous extortion victims over about a two-year period.
“The people of Boston’s Chinatown deserve to live in peace and without violence in their community,” said United States Attorney Carmen M. Ortiz. “We are hopeful that this lengthy sentence will offer some relief to the community. Prosecuting organizations who prey on others will continue to be a priority for my office.”Luong admitted that he managed the illegal gambling business, and that numerous people were victims of his extortionate collections scheme. Luong’s business ran a series of three illegal gambling dens, on Edinboro Street, Harrison Avenue and Beach Street in Chinatown, from early July 2009 through June 2011. The gambling dens offered high-stakes gambling on Chinese table games. The most lucrative game was “pai gau,” in which the gamblers play against each other, not against the “house.” The “house” collects a five percent commission on every winning hand, and the winnings on each hand could range from hundreds to tens of thousands of dollars.
Luong and his company lent large amounts of money to gamblers and others. When debtors did not pay, Luong and his associates threatened to come after them and beat them up. Others, including the operators of other Chinatown gambling dens, were beaten up in order to maintain Luong’s “face,” and his ability to collect debts from frightened debtors.
During one of the intercepted conversations, Luong told a criminal associate that he had opened his illegal gambling business in Boston rather than in New York, because Boston was “like the countryside,” but “quite wealthy,” and “these country folks don’t know anything.” Luong said that his Beach Street gambling den had made $100,000 during a three-day period around Chinese New Year 2011, and that normally, the gambling den generated $60,000 or $70,000 per week in profits.
In several other intercepted conversations and voice mail messages, Luong threatened debtors with dire consequences if they did not pay up. Luong told one debtor that the debtor’s whole family would “go to hell” if he did not pay. Luong told the debtor about someone else whom Luong had beaten up the previous night, and warned the debtor that the same could happen to him. Luong told another debtor that she should not think that her being a woman would prevent Luong from beating her up if she did not pay.“Boston is one of a dozen cities nationwide which the FBI has identified as having a prevalence of Asian criminal enterprises. By identifying the threat posed by these enterprises, the FBI and our law enforcement partners can be persistent, methodical, and unyielding in investigating their activity,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston division. “The residents of Boston’s Chinatown and others affected by Mr. Luong’s crimes should know that we are continuing to pursue those whose criminal activity disrupts the community’s economic and social vibrancy.”
“The defendant in this case gambled and lost. Illegal gambling is not a victimless crime. Those who participate in these criminal enterprises have no problem using threats and violence to collect outstanding debts,” said Boston Police Commissioner Edward F. Davis. “Today’s sentence sends a powerful message; this type of activity will not be condoned.”
“In addition to breaking the law by conducting unauthorized games of chance and usurious lending, gambling houses breed and attract violence,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. “The people who run the games use intimidation and violence to collect debts, and the games themselves are targets for criminals, often armed, who are looking to do a rip for a quick score. Operations like the one Minh Cam Luong ran cannot be tolerated.”
Quincy Police Chief Paul Keenan said, “The Quincy Police are pleased with the outcome of the Minh Cam Luong case. The outcome was the result of a long and difficult investigation working in collaboration with a number of law enforcement organizations, the FBI, the IRS, Boston Police, Medford Police, Mass Department of Corrections, State Police and the US Attorney’s Office.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.
Luong was initially charged along with nine others in 2011. The indictment was superseded in August 2012, charging two additional individuals. To date, all 10 of the defendants charged in the initial indictment and one of the defendants added by the superseding indictment have pleaded guilty to illegal gambling business or extortionate collections conspiracy charges. Last week, Pau Hin, also of Quincy, whom the government described in court as Luong’s partner and primary enforcer and debt collector, pleaded guilty to illegal gambling business and extortionate collections charges, and also pleaded guilty to participating with Luong in a conspiracy to make extortionate high-interest loans to gamblers and others in Chinatown and at Foxwoods casino. Pau’s sentencing is scheduled for June 5, 2013.
United States Attorney Ortiz; SAC DesLauriers; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in Boston; Boston Police Commissioner Davis; Colonel Alben; Quincy Police Chief Keenan; Medford Police Chief Leo A. Sacco, Jr.; and Commissioner Spencer; made the announcement. The cases are being prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of the Organized Crime Strike Force Unit.Putnam County Man Sentenced to Federal Prison for Possessing A Stolen FirearmRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Putnam County man was sentenced to a year and a half in federal prison for possession of a stolen firearm. Robert Allen Armstrong, 25, of Hurricane, W.Va., previously pleaded guilty in October 2012. On July 16, 2010, officers with the Hurricane Police Department arrived at the defendant’s Putnam County residence to execute an arrest warrant. During the execution of the warrant, an officer seized a Raven Arms .25 caliber pistol from behind a planter located on the porch of the residence. Armstrong was arrested at the time.
The defendant admitted that he possessed a Ruger .22 caliber pistol in his bedroom dresser at the residence. Law enforcement officers later received a complaint that the Ruger .22 caliber pistol had been stolen from a pickup truck sometime between July 15 and July 22, 2010. Armstrong admitted that he knew the Ruger .22 caliber pistol had been stolen.
Armstrong was previously convicted of a felony in February 2007 in the Circuit Court of Putnam County, West Virginia and did not have his rights to possess a firearm restored.
This case was investigated by the Hurricane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Joshua Hanks handled the prosecution.
The sentence was imposed by United States District Chief Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was indicted by a federal grand jury for Assault on a Federal Officer and Assault With a Dangerous Weapon.
Kaleb Mills, 19, was indicted on February 20, 2013 for hitting an Oglala Sioux Tribe police officer with his car. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Mills is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Mills was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Pine Ridge Man Indicted for Aiding and Abetting in AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge man was indicted by a federal grand jury for aiding and abetting in the assault of another man at Pine Ridge on October 16, 2012.
William Clifford, age 24, was indicted on October 23, 2012 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Clifford appeared before U.S. Magistrate Judge Veronica L. Duffy on February 12, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine, or both, up to 3 years of supervised release, and a $100 special assessment. The charges are merely an accusation and Clifford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case. Clifford was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Percy Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On March 1, 2013, Kathy L. Griffin, 36, of Percy, IL, pled guilty in United States District Court in Benton to a one-count second superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that Griffin was involved with others in the manufacture of methamphetamine. Griffin obtained and supplied over 103 grams of pseudoephedrine for use during the manufacture methamphetamine.
Sentencing was set for June 6, 2013. At that time, Griffin faces up to 20 years’ imprisonment, 4 years’ supervised release, and a fine of up to $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Operators of Multi-State Prostitution Ring using Illegal Asian Immigrants Indicted for Conspiracy and Money LaunderingRead the Press Release
Six people who operated a web of apartments in four States used as brothels were indicted last week for conspiracy to transport individuals for prostitution, conspiracy to use a communications facility to promote prostitution and conspiracy to engage in money laundering, announced U.S. Attorney Jenny A. Durkan. The indictment was returned following an undercover investigation involving the King County Sheriff’s Office, the Kirkland Police Department, the Bellevue Police Department, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The conspirators advertised Asian women for ‘massage services’ on backpage.com, and leased apartments in Bellevue and Kirkland, Scottsdale, Arizona, Chicago, Illinois, and Falls Church/Tysons Corner, Virginia. Some of the defendants will appear in U.S. District Court in Seattle at 2:30 p.m. today.
“These defendants exploited vulnerable women immigrants to enrich themselves,” said U.S. Attorney Jenny A. Durkan. “We will work with our partners to stop this exploitation. I commend the member of our community who alerted law enforcement. I also applaud the good work of the King County Sheriff’s Office, and the Bellevue and Kirkland Police Departments for their work with ICE’s Homeland Security Investigations on this case.”
According to the indictment and other records filed in the case, law enforcement began investigating reports of apparent prostitution activity at a Kirkland apartment complex. The investigation revealed that six people were working together running a prostitution business utilizing apartments they rented in four different states, and ads placed on backpage.com. Many of the women who provided sexual services were in the U.S. illegally, having overstayed their visas. The women owed debts of as much as $60,000 to the leader of the prostitution ring, for providing them with the employment opportunities in the U.S. Most of the women were recruited in Thailand and came to the U.S. knowing they would be sex workers to pay off their debt. The conspirators used multiple cell phones to place the ads, and one of the conspirators worked as the “operator,” lining up appointments for the women. Those indicted today include:
UNRUEAN ABOULAFIA, 34, of Bellevue is the leader of the scheme. A Thai national, she was in the U.S. illegally. She allegedly recruited the women from Thailand, and advertised their services on backpage.com. The women paid her their smuggling debt.
THANYATHORN MOHR, 35, of Bellevue is a Thai National who was legally in the U.S. She allegedly was the “operator” for the women, responding to the calls generated by the backpage.com ads, scheduling appointments and directing clients to the apartments.
JEFF CHU, 48, a U.S. citizen living in Bellevue, allegedly leased various apartments for the group in Bellevue and in Illinois, in both his name and the name of his ex-wife. He collected some of the proceeds for the conspiracy and laundered the money through various bank accounts.
XINPING ZHANG, 39, a Chinese National legally in the U.S. and CHU’s ex-wife. She allegedly rented various apartments for the conspirators, collected money and laundered funds.
EDWARD FLANIGAN, 57 of Federal Way, Washington, allegedly rented apartments for the prostitution activities in Washington and Arizona.
STEVEN ABOULAFIA, 59, a U.S. Citizen of Henderson, Nevada, and the ex-husband of the ring leader, allegedly leased apartments in Washington and Virginia and collected prostitution proceeds.
“This investigation has revealed a criminal enterprise that spans at least four states and affects multiple residential neighborhoods,” said Brad Bench, special agent in charge of HSI Seattle. “Only through multi-agency cooperative investigations can law enforcement be most effective at attacking and dismantling these organizations that prey on the vulnerable and often bring other criminal activity into our area.”
“This case is more than prostitution, money laundering, and conspiracy. It is about human trafficking,” said King County Sheriff John Urquhart. “The Sheriff’s Office is committed to fighting human trafficking and holding responsible those who engage in this despicable activity.”
“The Bellevue Police Department is committed to proactively targeting all forms of human trafficking with our law enforcement partners on all levels (local, county, state, and federal). Bellevue police condemns the financial and physical exploitation of these victims and the suspects who manage these operations,” said Bellevue Police Investigations Captain Steve Lynch.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy to transport individuals for prostitution and conspiracy to use a communications facility to promote prostitution are each punishable by up to five years in prison, and conspiracy to engage in money laundering is punishable by up to twenty years in prison.The case is being investigated by the King County Sheriff’s Office; HSI Seattle, Chicago, and Washington, DC; the Bellevue Police Department; and the Kirkland Police Department. The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Olathe Man Sentenced on Charge of Failing to File Federal Currency ReportsRead the Press Release
KANSAS CITY, KAN. – A man from Olathe, Kan., has been sentenced to 21 months in federal prison for failing to file federal currency transaction reports, U.S. Attorney Barry Grissom said today.
Pedro R. Padilla, 46, Olathe, Kan., pleaded guilty to 10 counts of willfully failing to file currency reports. A criminal information filed in June 2012 in U.S. District Court in Kansas City, Kan., alleged that the transactions occurred at Novedades El Guero, an Olathe business engaged in check cashing. The information alleged Padilla failed to make reports on 10 transactions that took place in 2011 ranging from $10,541 to $44,840.
Grissom commended the Internal Revenue Service, Criminal Investigation, and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Oglala Man Sentenced for Assault of A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota man convicted of Assault on a Federal Officer was sentenced on February 25, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Andrew Cochran, age 24, was sentenced to time served and 1 year of supervised release and ordered to pay $100 to the Victim Assistance Fund.
In August 2012, Cochran intentionally struck an Oglala Sioux tribal police officer’s vehicle with his pickup truck, as the officer attempted to stop Cochran’s vehicle. He pled guilty on November 28, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Newark, N.J., Businessman Sentenced to Two Years’ Probation for Extortion ConspiracyRead the Press Release
TRENTON, N.J. – Newark, N.J., businessman Sonnie Cooper was sentenced today to two years of probation, including eight months of home confinement, for his part in an extortion conspiracy in which a former Newark deputy mayor official used his official position to steer demolition work to Cooper’s trucking company, U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Freda L.Wolfson imposed the sentence today in Trenton federal court. A jury returned a guilty verdict against Cooper, 70, and former Newark Deputy Mayor for Public Safety Ronald Salahuddin, 62, following a trial in October 2011. Salahuddin and Cooper were both convicted of one count of conspiracy to extort under the color of official right. They were each acquitted of one count of attempted extortion under the color of official right, and two counts of bribery. Salahuddin also was acquitted of an additional count of bribery.
On Feb. 11, 2013, Judge Wolfson sentenced Salahuddin to one year and one day in prison.
According to documents filed in this case and the evidence at trial:
Shortly after Salahuddin became deputy mayor in July 2006 and through December 2007, Salahuddin and Cooper conspired to use Salahuddin’s official position to steer City of Newark and Prudential Center demolition work to a cooperating witness who, in exchange for Salahuddin’s official action and influence, had to give a portion of that work to Cooper, the owner of S. Cooper Brothers Trucking, Inc. (“Cooper Trucking”).
While deputy mayor, Salahuddin maintained a concealed financial interest in Cooper Trucking. Salahuddin mortgaged approximately $900,000 worth of property as collateral for Cooper Trucking, as well as lent money to Cooper for payroll and received money from Cooper related to the company’s operations.
In addition to probation, Judge Wolfson fined him $3,000.U.S. Attorney Fishman credited special agents of the FBI’s Trenton and Newark Field Offices, under the direction of Acting Special Agent in Charge David Velazquez; and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Office in Trenton, Assistant U.S. Attorneys and Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and James B. Nobile, chief of the Special Prosecutions Division.
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Defense counsel: Alan Zegas Esq., Chatham, N.JNew York Loan Broker Arraigned on Charges of Defrauding Customers of $1.2 MillionRead the Press Release
ATLANTA - A New York broker has been indicted for conspiring to defraud 350 financially strapped customers of more than $1.2 million. Kenneth J. Enrico, 46, of Bohemia, New York, was arraigned today on a federal indictment before United States Magistrate Janet F. King on one count of conspiracy, three counts of mail fraud, and thirteen counts of wire fraud. The federal grand jury indicted Enrico on February 19, 2013.
“The public is once again reminded that if a deal sounds too good to be true, it usually is,” said United States Attorney Sally Quillian Yates. “The charges against Enrico reflect our continuing commitment to protect our more financially vulnerable victims from the fraudsters who prey upon them.”
According to United States Attorney Yates, the charges and other information presented in court, between June 2011 and August 2012, Enrico offered property buyers private lender loans of 105% of the property’s selling price at a 4.99% interest rate, regardless of the buyer’s credit score, as long as the buyers had jobs that generated enough income to qualify for the loan amount and monthly payments. Enrico required the buyers to pay him an up-front fee of $2,500 per loan, which he claimed covered loan processing fees and the appraisal. Enrico publicized his offer through several brokers, two of whom were located in the metropolitan Atlanta area. The broker tacked on additional fees.
More than 350 individuals responded to Enrico’s pitch and sent in more than $1.2 million in up-front fees either to Enrico directly or through the brokers. Enrico approved all of the buyers for loans. However, none of the buyers ever received a loan from Enrico. He gave the buyers numerous excuses as to why their loans never closed. Not only did the buyers lose the fees paid to Enrico, they lost the earnest money they paid to the sellers of the properties they were trying to buy when their sales contracts expired. The buyers often relied on Enrico’s excuses and entered into sales contracts on second properties with additional earnest money payments, which they later lost when Enrico never funded their loans.
The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove his guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney David Leta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Montana Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Steven Shane McCann, age 29 of Missoula, Montana appeared before Chief U.S. District Judge Jeffrey L. Viken on February 14, 2013 and pled guilty to Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine.
On May 17, 2012 McCann, a previously convicted felon, was found in possession of a firearm. The investigation was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Highway Patrol, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Mission Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Eddie Hummingbird, age 48, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 4, 2013 and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 2 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on April 14, 2012 when Hummingbird sexually abused the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Mission Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Larceny.
Harvey LaPointe, age 62, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 27, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 5 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
LaPointe was released on bond pending trial. A trial date has not been set.
Mission Man Indicted for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Johnny Lunderman, age 30, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 26, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Lunderman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lunderman was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Minnesota Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Jesse Lawrence Brown Otter, age 45, of Minneapolis, Minnesota appeared before U.S. Magistrate Roberto A. Lange on February 26, 2013 and pled guilty to an Indictment that charged him with Failure to Pay Legal Child Support. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year of custody upon revocation; a $100.00 assessment fee; and child support restitution amount owed at the time of sentencing.
Brown Otter was ordered by the Eighth Judicial Circuit Court, Corson County, South Dakota to pay $150.00 per month for his minor child, commencing August 1, 1992. At the time of Indictment, he had not made a child support payment since July of 2007, and the total arrearage amount was $25,342.12.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Methamphetamine Indictment AnnouncedRead the Press Release
A Jackson County man and a Franklin County woman were indicted on February 21, 2013, in a one-count superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
On February 25, 2013, Rachel L. Mills, 34, of Mulkeytown, Illinois, appeared in federal court in Benton, Illinois, on the one count superseding indictment charging conspiracy to manufacture methamphetamine. At the February 26, 2013, detention hearing, Mills was ordered held without bond pending an April 29, 2013, jury trial. Co-defendant Joseph R. Green, 48, of Elkville, Illinois, has previously appeared in federal court on the charge and is also being held without bond pending trial.
According to the indictment, the offense occurred between August 2009 and September 4, 2012, in Jackson County. The offense carries a penalty of up to 20 years in prison, 3 years supervised release, and a fine of up to $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Meridian Man Sentenced to 150 Months in Federal Prison for Trafficking MethRead the Press Release
POCATELLO – Cesar Urrea-Navarette, 34, of Meridian, Idaho, was sentenced in federal court today to 150 months in prison followed by five years of supervised release for possession with intent to distribute in excess of fifty grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also fined Urrea-Navarette $1,000. He pleaded guilty to the charge on December 18, 2012.
According to the indictment, on July 7, 2011, a meeting was arranged by a third party between Urrea-Navarette and an undercover officer, who subsequently met with Urrea-Navarette in a vehicle located at a restaurant parking lot in Boise. At that meeting, Urrea-Navarette sold the undercover officer 55.10 grams of actual methamphetamine in exchange for $2,400. According to the indictment, Urrea-Navarette admitted he possessed the methamphetamine with the intent to distribute it on various dates, including July 7, 2011.
Co-defendant Ruben Moreno Sanchez, of Boise, was sentenced in September 2012 to 151 months in prison for possession with intent to distribute fifty grams or more of actual methamphetamine.
The indictment was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with Idaho State Police, Drug Enforcement Administration, and Boise Police Department. Other federal agencies participating in the OCDETF program include the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Martin Men Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that two men from Martin, South Dakota have been indicted by a federal grand jury for allegedly assaulting two other men with shod feet, a golf club, and a large rock at Bear Creek Community on September 29, 2012.
Roby Shangreaux, age 24, and Keith Shangreaux, a/k/a Dewey Shangreaux, age 25, were each indicted by a federal grand jury on February 20, 2013 for two counts of Assault with a Dangerous Weapon and two counts of Assault Resulting in Serious Bodily Injury. Both men appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine on each count. The charges are merely accusations and both defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Bennett County Sheriff's Office.
Both defendants were remanded to the custody of the U.S. Marshal. A trial date has been set for April 30, 2013.
Man Who Committed the Armed Robbery of A Credit Union in Pampa, Texas, Is Sentenced to 96 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — Billy Michael Grimes, 51, of Pampa, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 96 months in federal prison and ordered to pay $2,800 in restitution for committing the armed robbery of a credit union in Pampa in September 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on September 15, 2012, Grimes, wearing a black hoodie and sweat pants and a New York Yankees ball cap, entered the Amarillo Community Federal Credit Union, located on North Hobart Street in Pampa, approached a teller and said he needed to make a withdrawal. The teller advised him that he would need to complete a withdrawal slip. Displaying a gun, Grimes told her he did not need a withdrawal slip and to give him all the money. After receiving the cash from the teller, Grimes ran out of the Credit Union. Shortly thereafter, Grimes was identified by law enforcement, located driving his vehicle and was stopped. He had a donut bag with him and said that he’d just come from the donut shop. The investigation revealed that Grimes used one of the bills from the robbery to purchase the donuts, just moments after robbing the Credit Union.
The case was investigated by the FBI and the Pampa Police Department. Assistant U.S. Attorney Christy L. Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Luray Man Convicted of Defrauding HIV/AIDS InvestorsRead the Press Release
RICHMOND, Va. – Michael F. Harris, 49, of Luray, Virginia, was found guilty of defrauding investors of more than $700,000 from a project aimed at purportedly developing a treatment for Human Immunodeficiency Virus infection / Acquired Immunodeficiency Syndrome (HIV/AIDS).
Following the five-day jury trial before United States District Judge Henry E. Hudson in which Harris was found guilty of securities fraud, wire fraud and mail fraud, he was immediately remanded into custody of the United States Marshal. Harris faces a maximum sentence of 90 years’ imprisonment when he is sentenced on June 11, 2013.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office, made the announcement.
“Mr. Harris used hundreds of thousands of investor funds to travel the world and improve his home and farm,” said U.S. Attorney MacBride. “Thanks to the ongoing efforts of the Virginia Financial and Securities Fraud Task Force, Mr. Harris is another fraudster who has been caught and held accountable for his crimes.”
"Mr. Harris' fraudulent misrepresentations to investors regarding his proposed HIV/AIDS treatment ended in substantial proceeds being misappropriated for his personal use,” said FBI SAC Mazanec. “This multi-agency investigative effort and today's conviction demonstrates the zero-tolerance we have for this type of criminal behavior."
According to evidence presented at trial, Harris was the President and majority shareholder of M.F. Harris Research Inc. (MFH), a company incorporated under the laws of North Carolina in December 2003. He formed MFH to develop a treatment for HIV/AIDS. At various times in the past, Harris claimed to have discovered that the use of hyperbaric chambers to treat divers infected with HIV/AIDS for decompression sickness (also referred to as “the bends”), unexpectedly inhibited the virus. HARRIS claimed that MFH was devoted to pursuing a potential treatment regimen for HIV/AIDS using the hyperbaric chambers.
Evidence established that prior to October 2005 and continuing through at least July 2011, Harris solicited more than 80 investors for funds for MFH to use for: (a) obtaining MFH patents, both in the United States and abroad; (b) conducting human trials or assisting with advancing human trials using the treatment method; (c) continuing research on the treatment method; and (d) developing a treatment for HIV/AIDS. In connection with those investments, the defendant sold equity shares of MFH original issue stock and represented that invested funds would largely be used to pursue those objectives. From 2005 through 2011, Harris solicited most investors to pay $1 per share and, in many instances, he promised that MFH shares would be worth 10 to 20 times that amount once the patents were approved and clinical trials completed. On several occasions, Harris solicited investors with a sense of urgency and immediate need for funds in order to meet deadlines associated with the United States or foreign patent applications.
At trial, the United States established that Harris made material misrepresentations and omissions in connection with handling investors’ funds, including: (a) misrepresentations regarding MFH’s actual and proposed ownership of the United States patent; (b) misrepresentations about the security of the investments; (c) affirmative acts of concealing financial information regarding MFH and the defendant’s use of MFH investment funds; and (d) omissions regarding Harris’s intended use of the MFH investment funds for his own personal use and benefit. In reality, the defendant retained the United States patent in his own name and diverted the overwhelming majority of MFH investment funds for his own personal use and benefit. Between October 2005 and July 2011, Harris received over $880,000 in funds from the investors for MFH. A financial analyst from the National White Collar Crime Center (NW3C) testified at trial that of this money Harris misappropriated over $700,000 for his own use and benefit, unrelated to the MFH-related areas identified by the defendant to the investors. He used those funds to, among other things: (a) spend more than $250,000 for the costs associated with the purchase, improvements, and utilities associated with the defendant’s primary residence in Luray, Virginia; (b) pay over $70,000 for the his horse and farm expenses; (c) spend more than $25,000 at firearms stores; and (d) pay other personal expenses, including automobile, entertainment, restaurant, spa, international travel to competitive kayaking events, and other personal expenses.
The investigation was led by the Fredericksburg office of the Federal Bureau of Investigation (FBI) and the Virginia State Corporation Commission (SCC). Those agencies received assistance in the financial investigation from the National White Collar Crime Center (NW3C). Assistant United States Attorney Michael Gill and Special Assistant United States Attorney and Counsel with the SCC Gauhar Naseem prosecuted the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Lower Brule Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Sexual Abuse of a Minor was sentenced on February 25, 2013 by U.S. District Judge Roberto A. Lange. Ty Middletent, age 22, was sentenced to 18 months in custody followed by 5 years of supervised release. Middletent was also ordered to pay $100 to the Victim Assistance Fund.
Middletent was indicted for Sexual Abuse and Sexual Abuse of a Minor by a federal grand jury on August 22, 2012 and pled guilty on November 14, 2012. The charge stems from an incident occurring between August 13, 2012 and August 14, 2012 in which Middletent and the victim were consuming alcohol at a residence in Lower Brule. Middletent and the victim engaged in sexual intercourse. The victim was 13 years old at the time. Middletent admits he knew the age of the victim and that she was too young to engage in any type of sexual activity.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Middletent was immediately turned over to the custody of the U.S. Marshal.